Beautiful Virgin Islands

Saturday, Mar 25, 2023

Credit Suisse shares tumble again, sentiment remains fragile

Credit Suisse shares tumble again, sentiment remains fragile

Shares in Credit Suisse resumed their decline on Friday, giving up early gains, in a sign that investor sentiment remains fragile in a week that has seen the troubled Swiss lender secure a $54 billion lifeline, according to Reuters.
A ratings downgrade and a US lawsuit on Thursday offset some of the relief that stemmed from the emergency liquidity line the bank secured from the Swiss central bank earlier in the day.

Credit Suisse fell by as much as 10 percent following two days of sharp swings, which saw its shares jump 20 percent on Thursday after a 24 percent drop on Wednesday when its largest investor said it would not be able to increase its stake. Volatility remained high.

“Whether depositors are sufficiently reassured to stem outflows over the next few days is a key question, in our view,” said Frédérique Carrier, head of investment strategy for RBC Wealth Management.

“While markets are relieved that the Swiss central bank stepped in, sentiment is bound to remain very fragile, particularly as investors will likely worry about the eventual economic impact of aggressive monetary policy tightening by the European Central Bank,” she added.

Credit Suisse saw more than $200 million net outflows from its US and European managed funds after March 13, Morningstar Direct said on Friday.

DBRS Morningstar on Thursday became the first global rating agency to cut the bank’s credit score, with a downgrade to “BBB,” which still qualifies Credit Suisse as investment grade.

The head of the Credit Suisse’s Swiss business said late on Thursday the funding would allow the bank to continue its revamp, although it could take time to win back client confidence.

In a further sign that concern about banking stress remains elevated, the ECB Supervisory Board convened an unscheduled meeting on Friday to discuss stress and vulnerabilities in the euro zone bank sector.

The ECB supervisors saw no contagion to euro zone banks from the market turmoil, a source familiar with the content of the meeting told Reuters, adding that supervisors were informed that deposits remained stable across euro zone banks and exposure to Credit Suisse was immaterial.

A $30 billion lifeline for US-based First Republic Bank eased fears about its future, but a late tumble in its shares showed investors remained concerned about cracks in the sector after the collapse of two other mid-sized US lenders over the past week.

Credit Suisse shares are down about 26 percent this week and poised for their biggest week drop since October 2008 and the global financial crisis.

European banking stocks were marginally higher on Friday but were nursing heavy weekly losses — down almost 9 percent in their biggest fall in a year.

“We are still a little cautious here but there certainly has been more positive news on Credit Suisse,” said John Milroy, investment adviser at Ord Minnett.

“Markets still thinking that there is something else to crack with the Fed hell bent on raising rates and some more work to do.”

It’s not just the confidence of the markets that has been severely shaken.

US shareholders of Credit Suisse sued the bank on Thursday, claiming it defrauded them by concealing problems with its finances. Credit Suisse declined to comment on the lawsuit.
Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Powell: Silicon Valley Bank was an 'outlier'
I have a dream, MLK inspiring speech
Donald Trump arrested – Twitter goes wild with doctored pictures
Aretha Franklin, Marvis Staples - Oh Happy Day
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
BVI Freedom Song
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Billy Preston - You Can't Beat God Giving (Live)
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Paris Rioting vs Macron anti democratic law
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
'Sexual Fantasy' Assignment At US School Outrages Parents
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Credit Suisse to borrow $54 billion from Swiss central bank
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Russian Hackers Preparing New Cyber Assault Against Ukraine
Hello Dolly
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
If this was in Tehran, Moscow or Hong Kong
Bob Marley - Get Up Stand Up
Nashville police officer, and a female driver shooting one another
Yes He Can
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
What A Friend We Have In Jesus
Mexican President Claims Mexico is Safer than the U.S.
Unforgettable
A brief banking situation report
Touch The Hem Of His Garment
Lady bites police officer and gets instantly reaction
The Lord's Prayer
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
THE GOD MOVEMENT...BEAUTIFUL BVI
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Siyahamba
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Silicon Valley Bank exec was Lehman Brothers CFO
Ramblin' Rose
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Protoje - Who Knows ft. Chronixx
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Pressure - Virgin Islands Nice
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
Phil Wickham - House Of The Lord
Elon Musk Is Planning To Build A Town In Texas For His Employees
My God Is Real (Yes, God Is Real)
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Louis Armstrong - When The Saints Go Marching In
Fitness scam
Kanye West Sunday Service - hallelujah, salvation, and glory
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Jonathan Nelson - I Believe (Island Medley
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
From The Virgin Islands Sqad Up
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Common, John Legend - Glory
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Banking regulators close SVB, the largest bank failure since the financial crisis
I have a dream, MLK inspiring speech
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Aretha Franklin, Marvis Staples - Oh Happy Day
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
BVI Freedom Song
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
Billy Preston - You Can't Beat God Giving (Live)
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
JP Morgan Becomes First Bank to Predict UK Will Avoid Recession
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Hello Dolly
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
×